In 2014, Iran imposed import quota on palm oil imports, based on which total palm oil import did not exceed 30% of its total oils and fats import. As a result, Iran’s palm oil purchases dropped by 47% from 997,000 tons in 2013 to 330,970 tons in 2015.

In March 2016, the import quota was removed but replaced with a higher import tax of 40%. Other vegetable oils are taxed at 24%, according to the newspaper.

According to a new report by US-based market research and consulting company Grand View Research, Inc., Iran’s palm oil market is expected to top $600 million by 2025.

Its increasing usage in cosmetics and biodiesel industries has contributed to a significant portion of market revenue in recent years.

Lower palm product prices, compared to other vegetable products such as soybean, sunflower and groundnut, have also led to higher substitution in the food, beverage, cosmetics and biodiesel industries.